ARCC vs. SOFI: Ares Capital vs. SoFi Stock Comparison

Company Profile

Ares Capital (ARCC) and SoFi (SOFI) both fall under the Financial Services industry group, but ARCC is classified in Capital Markets while SOFI is classified in Consumer Finance.

Ares Capital (ARCC) has more than two decades of public-market history since October 5, 2004, whereas SoFi (SOFI) listed on January 4, 2021 and has a much shorter record to draw on.

Price Performance

Cumulative Growth

Trailing Returns

Calendar-Year Returns

Performance Metrics

Risk Profile

Drawdown History

Return Distribution

Risk Metrics

SoFi (SOFI) has a highly aggressive beta of 2.22, indicating much higher sensitivity to broad-market moves, while Ares Capital (ARCC) is defensive at 0.59 and tends to be less market-sensitive — a wide gap in beta profiles.

Risk-Adjusted Performance

Risk-Return Positioning

Risk-Adjusted Metrics

Profitability

Both Ares Capital (ARCC) at 6.19% and SoFi (SOFI) at 7.35% land near their industries’ usual ROE ranges, so capital efficiency looks broadly in line with peers on both sides.

Ares Capital (ARCC) at 28.35% retains a top-quartile share of revenue as profit, ahead of SoFi (SOFI) at 15.75%, which keeps about the industry-typical share.

Ares Capital (ARCC) at 72.74% operates in the top operating margin quartile, ahead of SoFi (SOFI) at 23.19%, which runs around its industry’s norm.

Profitability Metrics

Growth

SoFi (SOFI) at 38.32% sits in the top revenue growth quartile, while Ares Capital (ARCC) at -12.08% is in the bottom quartile, showing a clear gap in revenue momentum.

Both Ares Capital (ARCC) at -23.77% and SoFi (SOFI) at 0.00% land near their industries' usual EPS growth ranges, so bottom-line momentum looks broadly in line with peers on both sides.

Growth Metrics

Financial Strength

current ratio doesn’t apply on either side: Ares Capital (ARCC) in Financial Services and SoFi (SOFI) in Financial Services both report balance sheets without a current/non-current split, so their short-term liquidity is better judged through regulatory and funding measures.

debt-to-equity ratio is set aside for both: Ares Capital (ARCC) in Financial Services and SoFi (SOFI) in Financial Services run businesses where balance-sheet leverage is part of the model, so capital-adequacy and funding measures are the better gauges of balance-sheet risk.

Financial Strength Metrics

Dividends

SoFi (SOFI) pays no dividend (yield 0.00%) — it may be reinvesting, using buybacks, or simply not returning cash through dividends. Meanwhile Ares Capital (ARCC) reports a yield of 9.92%, ranking against industry peers normally.

Ares Capital (ARCC) reports payout ratio above 100% at 157.38%, meaning dividends exceeded current-period earnings; SoFi (SOFI) pays no dividend (payout 0.00%).

Dividend Metrics

Valuation

Ares Capital (ARCC) at 15.68 is near its industry’s usual P/E ratio, while SoFi (SOFI) at 29.47 sits in the richer quartile — SOFI needs stronger growth or earnings quality to justify the premium.

On P/S ratio, both Ares Capital (ARCC) at 4.48 and SoFi (SOFI) at 4.49 are priced roughly in line with their industries — neither looks cheap nor rich on a sales basis.

On P/B ratio, both Ares Capital (ARCC) at 0.99 and SoFi (SOFI) at 1.86 are valued close to their industries’ norm against book — neither stands out from peers.

Valuation Metrics